I've been trying to break into project finance and would like your guys' input. A lot of positions I've seen online (both in project finance and infra PE) say the CFA is a nice to have, so I signed up to take L1 this December (whether that actually happens is another story). However, as we all know, though the CFA is well-regarded, it's not aimed at every industry, and other than being a "nice to have" to check a box, I don't see how it would be all that useful in infra overall. So I'm considering pushing L1 to February and learning project finance modeling. I don't necessarily feel confident
29 Sep 2020
A friend sent me an old modelling test he had to complete for a BB a few years ago so that I could practice but I am having trouble with it (Balance Sheet wont Balance, not sure if margin assumptions are right). Would anyone be willing to take a look and see where I am messing up or what I should change? It's not super robust, very simple for someone who knows what they are doing I am sure. I don't know how to attach files here so I can send it or someone can tell me the best method. Would really appreciate any help.
17 Apr 2020
Looking for a tutor to do a few one on one sessions with me via zoom to review case studies and give basic overview of REPE modeling basics. Any resources for live tutoring? Or anybody on this forum interested? I have done online self paced courses.
25 Aug 2020
Interested to know under what circumstances people would consider shifting from Excel to something else. Google Sheets currently doesn't have the same level of features as Excel, but there are obvious advantages in terms of things like collaboration. Some aspects of Excel are seriously frustrating (can't dual screen the same model, no version control, trace/precedents dependents is essential but pretty terrible). Some of these things can be solved by plugins but not all of them. So what would it take for you to move? Either onto Google Sheets or even completely different software. Parity with
17 Feb 2020
I always struggle formatting models that I create from scratch. I don't have any issues building the model itself, but it always ends up visually looking bad. Does anyone have any good model formats they can share? Screenshots (or excel files) would work... I'm just looking for how to make shit look good visually. A few examples: how to format the date cells along the top be: no-fill with bold text or solid fill with white text? Or how to format total and subtotal rows: light grey fill? no fill with double underline? both? FML please help
25 Jun 2020
Hey guys, Ever since the FASB has made it mandatory to report Operating Lease Assets and Liabilities on the Balance Sheet, I've not been sure how to forecast it reasonably. I understand that you can find the PV of Lease Payments and subtract interest expense for liabilities, or subtract depreciation for assets, etc. But when the lease payment is actually due (current year), do we just count that as principal repayments and have the remaining lease payments PV on the balance sheet? Would love clarity on forecasting this, if anyone should have the insight. Thanks!
03 May 2020
Hey, looking for (1) advice as to how can I position my accounting job so it could be somehow useful for ER profile when the time comes. I am learning SAP FICO module and will work with the same within the next 3 months (placement started). Also, am targeting tech companies and e-commerce so as to understand the business more. (2) Advice on any other industry to target would be great. The other threads have been useful as to what skills would help me out but some specific guidance/tips would be appreciated. Background: Current age: 22, Commerce grad (easy UG course), bad GPA : 2.3 , 2 year gap
22 Nov 2020
I decided it'll be more helpful for me to focus more attention on REFM since now I plan to go into REPE rather than IB.
12 Nov 2020
I know there are a lot of forums about what to expect in a REPE modeling test, but I am unsure which positions these tests are for. I have a take-home modeling test for an entry position - Acquisitions/Asset Management Analyst role with a REPE firm that invests primarily in office (life sciences) but also some hotel, retail and multi family. I was told the test would be an hour long, and would primarily gauge my charting skills, knowledge of formulas, and level of modeling. Can anyone shed light on what I could expect during the test? I know that while they require a BA for the position, they
27 Oct 2020
I need a small favor. I have a very basic question about discounted cash flow modeling. I think I know the answer, and it is probably obvious, but I have been thinking about it so much that I have confused myself. This issue is very important to a financial model I have created for the acquisition of a property so I want to make sure I get it right. If you have 10 minutes to spare, please look at the attached spreadsheet and fill in the spaces highlighted in yellow. This is essentially a VERY simplified version of the issue I am having in my real model regarding time 0 cash flows and the
29 May 2019
Hello, I am doing my masters in Finance and for now we learned Financial Statement Modeling and some M&A modeling. If I want to work in equity (not sure if I prefer equity research or private equity), what should I know?, can you recommended me a course that could help me to learn what I need?. ( I will also ask to the masters director if I will learn what I need during my masters). Thank you,
24 Mar 2020
I have a second round interview coming up for an IB analyst position. All I know from the recruiter is that it will be an hour long technical interview with the associate and that it will involve testing my modeling skills and knowledge- DCF, LBO etc. I am assuming this involves a modeling test but I would find it surprising if I was asked to do an LBO AND a DCF model. Any thoughts on how I should prepare?
05 Jul 2019
Hi guys, Need your help on LBO modeling timings. Not a standard job, a pretty big one. To put it short - from your practice, how long can it take to complete a big modeling job (if we disregard any other outside factors like management etc). I would appreciate your thoughts. It's the first time I'm posting any questions, and have never spoken to anyone from PE or IB on how it works in their practice, so I would like to have better understanding of how much time it usually takes to complete certain modeling things. I'm working alone to complete everything. I'm not from PE myself, work in a
13 Nov 2019
Hi, everyone! I have a question regarding how Venture Capitalists value startups. As I am starting to prepare myself for entering VC, I want to know more about startup valuation. I assume DCF models will be useless, so how are venture capitalists doing it? Is it through comps valuation or precedent transactions? Thanks!
09 Sep 2020
This summer instead of taking classes I've used a good majority of my time doing my own things and continued to build on my website. I started working on building regression analysis in SAS using a dependent variable of either P/TBV, P/FCF or EV/EBITDA and trying to predict those by way of operating margin, assets/liabilities, estimated growth rates, etc... With varying degrees of applicability/success (doing this by sector for the S&P500 S&P400). Typically looking at the ones with the most applicable discount to predicted (valuation metric above). All minding that the model is decent-(ly)
08 Sep 2020
Context: I'm an analyst at a BB starting their second year. I'm trying to recruit to a HF and have had good communications so far with recruiters, quick response rates, and a few potential interviews coming (already completed a first round for one). From a market / idea generation perspective, I've been doing a ton of reading (both the news + the books everyone recommends) and have networked a ton. The networking has really helped in understanding the industry and learning the lingo, as well as for generating pitch ideas. The Issue: My group is not model-heavy. I'm in the debt world and
31 Aug 2020
UVA provides us with LinkedIn Learning for free and I found this financial modeling course https://www.linkedin.com/learning/financial-model… taught by Michael McDonald. I was wondering if anyone has taken this course and could give their opinion on it. Also, while on the topic of LinkedIn Learning, please let me know if there are any excel skill courses that you would recommend to someone that wants to do IB.
04 Sep 2019
So I'm working through a 3 statement model that projects out over 5 years. I had to do a model in the interview today and he gave me another model to take home and complete to discuss tomorrow AM. I have completed forecasting out the AR and Inventory but I'm lost on how to balance out the equity portion as my "check" is like $3k off. Can someone please help me figure this out and then explain to me how they did this? I'm not sure what to even google to find out how to finish this thing. Also, the interviewer told me that forecasting out the non-cash items (you'll see if you open the file) is
12 Jun 2019
Hi all, I'm a rising junior at a non-target public school on the east coast. Next summer I'm set to intern at an "elite boutique" middle market tech IB group (there's some consumer work too, but mostly Rx (thanks COVID)). Currently, I have my basic modeling skills down-pat from interview preparation, my current boutique IB internship (which is mostly simple waterfall and DCF models), and outside research. I'm looking to train hard through the fall, winter, and spring to prepare for the internship, and was wondering which platforms / training sites y'all would recommend for in-depth financial
31 Jul 2020
I wanted to get peoples opinions on both of these courses. I have done some research online and found that these two were the most recommended. * Is one superior than the other in regards to total content? * Which one is better for learning to underwrite commercial investment properties? * What are the pros and cons of each? Your comments are greatly appreciated. Also, if anyone has either of these courses and is interested in sharing with me i'm open to donations !
25 Jul 2019
Im looking at a deal that involves future debt funding for TI/LCs and CapEx. Lender is obligated to pay call it 50% of future TI/LC's and CapEx up to $10MM, upon which the Sponsor is on the hook for the remaining TI/LCs and CapEx, total cost is $15MM. $10MM Lender funded and $5MM Sponsor. Assuming the schedule of these expenses is irregular (i.e. $2MM Yr 1, $500k Yr 2, $3MM.......$750k Yr 5), how would I best model an accurate balance of future funding paid by the lender up until the $10MM future funding limit? After the lender has paid their share up to the future funding limit ($10MM), the
15 Jul 2019
Does anybody know how to properly value health insurance companies? Trying to build a model for UNH but getting caught up in how different the health insurance income statements are. Any insight would be helpful.
14 Apr 2020
Each company and each analysis is different, however, the "bare-bones" fundamentals are the same for DCF, Comps, precedent transactions, etc. So with that, do you guys build models and valuations from scratch (as in format, labels, sheets, cells, everything) or do you use a generic bare-bones template then modify accordingly? Cheers!
06 Nov 2017
Monkeys, Has anyone taken the CFI FMVA certification and if so what are you thoughts on the quality of its content? From what I have found it seems to be top shelf. Cheers & SB's in advance. MM
12 Apr 2019
Guys I'm new to the forum. I'm looking for a PC. And only a PC. I know there are tons of options out there, but here's what it's come down to: Lenovo P51 Lenovo Carbon X1 Dells XPS15 The computer will be used for business uses including modeling, word processing and other related functions. What has your experience been with any of these computers? If you have any other suggestions to offer please share. Also, keep in mind I am very interested in critical complaints of them. I'd love to know any shortcomings they may have. Thank you!
03 Dec 2017
Given the importance in finance (especially investment banking), what is more recognizable and valued within the industry: Wall Street Prep training or a certification like the CFMS (Certified Financial Modeling Specialist)? Any other financial modeling self studies or ideas greatly appreciated!
07 Dec 2016
Hi All - I have 2 interviews, one with Deloitte for their Valuation & Business Modeling team and one for PwC for their Deal - Valuations team. (Both in Dubai, UAE). I have been invited to do a case study for Deloitte - Valuation & Business Modeling. Does anyone know what this case study could look like? I am assuming excel based? I am new to this so I am not sure what to expect. I have also been invited to do a cast study for PwC - Deals Valuation. Any input here would be greatly appreciated as well!
25 Feb 2019
I am new to CRE and just started working as an analyst for a REPE firm. I have never used Argus before but started using it today. I have a lot of questions and am hoping someone on WSO can help me out. I am working for a small firm in the Midwest and am the only analyst (only person that has an Argus license). The firm I am working for is looking to acquire office's (mainly high-rise's) through out the country. I would like to get some best practices from experienced individuals. When presented with an OM & Argus file, do you create your own Argus file from scratch or just manipulate the
11 Jul 2017
I am beginning my MBA in the Fall (ideally to get into investment banking) and need to get a decent laptop for the 2 years. I don't need a ton of features or memory (I rarely use my old laptop today). The Microsoft Surface 4 looks portable, easy to use, and if I buy the keyboard, functions like a regular laptop. Am I missing anything?
20 May 2016
In one of my recent interviews, the MD asked me "how would you do the valuation and modeling of a company/start-up where there are no reports, study, comparables or transactions? - it's a new space/area identified altogether. The entrepreneur will say many things, but being a banker, how would you approach to value the company? Assume the start-up has zero revenue" How and where do we start? I mean no historicals, no comparables/transactions, no research reports, no size of the addressable market, ...
16 Aug 2015
14 Jan 2015
In a month I will be interning at a small investment firm and need to know how to how to do different valuations for stocks. I am currently a high school senior and to be frank I don't have a clue what am I doing. Where should I start in order be able to create models for stock valuations? Any help would be greatly appreciated. In two weeks if I feel absolutely fucked, I will pull out of the internship because I would rather not do it at all than do a poor or mediocre job.
08 May 2017
I am bored, and I would like to play around with financial modeling. I found some great powerpoints and videos on DCF and DCF analysis, but I would like to know what else I could be learning in my free time. Links or suggested resources would be greatly appreciated. Many thanks and best regards,
17 Dec 2014
Hi all. I'm looking for an online (self-study or guided) course in Excel financial modeling specifically for equity deals. It's for a consultant with very limited time, so I don't want him to have to filter through a bunch of other stuff in a financial modeling course to get to the equity deal stuff he needs. Any suggestions?
23 Feb 2018
I want to get better at recognizing and modelling issues in different kinds of businesses, and while some are reasonably straightforward (e.g., businesses driven off reasonably clear P x Q like industrials, software, or retail/restaurants), there are some that get trickier, like ones that are based on float or where there's something on the balance sheet that is really driving a lot of the value or operating risk. A friend recently broke down WeWork in pretty impressive terms, so I was curious if there were other examples of business models or industries that come to mind where I can start to
07 Nov 2018
Hey guys, I'm currently a senior in college and am currently applying to Investment Analyst jobs at companies that deal with public-companies. I'm wondering what some key financial models are that someone in an entry-level position should be able to produce in Excel. Also, what are some more advanced models/topics I should be familiar with that would help me stand out in the application process? Thanks in advance, it's much appreciated.
04 Dec 2019
I'm trying to figure out how to create a dynamic IRR syntax in Excel. If I change my disposition date, my cash flows and all other projections adjust automatically. I can't seem to come up with a proper way to have my IRR calculate only certain years cash flows as I change my sale date. I'm sure it's an =IF statement of some type... Any help is appreciated.
03 Feb 2016
I'll be attending college in the fall and wanted to get a head start and learn financial modeling and valuing companies. Are Martin Shkreli's videos on YouTube (
) a good resource for me to learn modeling and valuating a company? It seems to be helping and I am understanding what he says and I practice by making my own models as I learn. However, I don't want to miss out on any valuable information and have my models be incorrect. How applicable are Martin's courses towards modeling done in Hedge Funds and Equity Research?If there are better free
07 Jun 2017
This is my first post to WSO so I hope I'm doing this correctly. Here's a little about myself... Job : 1 year doing corporate finance at Top 3 Bulge Bracket bank Undergrad : (Mid-Atlantic) Non-Target - Penn State, Maryland, UNC Major GPA: 3.7+ Internships: 1 year at Elite RE development firm that builds casinos, entertainment complexes, shopping centers, multi-use etc
21 Aug 2014
Has anyone taken the courses and gotten the certification? I was told by a few senior people that taking this would look great on the resume and would help me lateral into an underwriting analyst role, since I am in an entirely different industry at the moment. Any thoughts or comments on this? Any other suggestions on what I can do to stand out as a lateral applicant?
23 Jul 2014
I'm now working on the simple lbo model for uni competition. But I tried several times that the ending balance of the debt still be negative. Should I adjust it, if so, how?
31 Mar 2016
Just a quick question regarding accounting/modeling. I have been learning to model with BIWS and recently tried to model two companies on my own from scratch. The place I'm having problems with is reconciling the current year BS and cash flow statement. For example, my formula for current year changes in accounts receivable in the cash flow statement is last year's A/R - this year's A/R on the BS. The difference between the years isn't equal to the amount reported on the cash flow statement. I know things like acquisitions can cause these discrepancies, but there weren't any. I read through the notes and couldn't find any explanation or adjustment that needs to be made.
21 Feb 2014
I'm writing this post for critical feedback from the analyst community. My background is investment principal for family office and ex-analyst for an EdTech VC Fund. As an investment professional, I always felt that new economy business models (SaaS, Mobile Apps, Video Streaming, Online Marketplace, etc.) are so different from the traditional ones (Manufacturing, Retail, etc) in terms of revenue models, metrics to track and financial models. Yesterday, I launched a campaign on Kickstarter which is a Web-based financial model builder that helps you to customize and download financial models for
17 Oct 2019
This is an asset purchase. The purchase price is 4.5 x EBITDA of $5mm = $22.5mm. The Buyer is assuming $7mm of long term debt related to the assets being acquired. The Seller is responsible for paying off the $5mm line of credit. There is no other debt. Transaction fees are estimated to be $1mm. Per the terms of the transaction, the Seller is providing a 5mm seller note and has agreed to a $4mm earn out. In addition, the Seller has agreed to invest an amount of cash sufficient to purchase 20% of the NewCo equity. Is the following Sources and Uses correct? Sources Long Term Debt: $7mm Sponsor Equity: $6mm ( plug = total uses of $13mm less $7mm long term debt; of this equity, 20%, or $1.2mm, provided by Seller and $4.8mm provided by Sponsor) Total: $13mm Uses
07 May 2014
I am building a financial model and need help with how to accelerate revenue drivers without doing it manually. What I am trying to do is build a revenue schedule where a piece of equipment is added on a start date and then based on the accelerator an additional piece is added every Nth month. What is a good excel formula to accomplish this?
29 Apr 2016
Was practicing FSM on a random company after taking WSP FSM lesson. Seemed pretty straight forward since it is mostly assumptions but I have no idea why my Projection Years are not balancing even though all the items are either projected with a growth rate or straight lined. Can anyone please take a look and try to help me :( For reference, green font is references to another cell, blue is hard coded, and black is for formulas. Also any comments/ criticism on the overall model is great too! THANK YOU!
08 Oct 2019
I am a "P&L" girl. I have built a very sophisticated scenario based projections model for an online business that I've been using for over two decades, since my company built LasVegas dot com. I'm very confident of the P&L side of my model. Since our business is pre-revenue, I have put our actuals from our accounting system in to the P&L, Cash Flows and Balance Sheet. Moving forward in OCT 19, there is a niggling error on the Balance Sheet (same amount from month 1 on) and can't find the problem. I suspect for King Kong, this is child's play, but I have been stuck on this for days. I am new
08 Oct 2019